Self-Insuring PEO

A PEO registered with the BWC under rule 4123-17-15.2 may apply to pay compensation directly as a self-insuring risk if the PEO meets all eligibility requirements set forth in sections 4123.35, 4125.03, 4125.05 and 4125.07 of the Ohio Revised Code and rule 4123-17-15 .

We refer a PEO application for self-insured status to the Self-insured Review Panel pursuant to paragraph (F)(1) of rule 4123-19-14.

Upon being granted the privilege of self-insurance the PEO must do all of the following:

Furnish security as provided by paragraphs (F), (G), and (H) of rule 4123-19-03 that is no less than 100 percent of the outstanding claim liabilities associated with the self-insured policy, as determined by BWC;

Not use an assurance organization to meet its security requirements;

Submit to the bureau every two years, or upon our request, an actuarial estimate of the PEO's unpaid loss and loss adjustment expense liabilities performed by an independent actuary with a fellow of the society of actuaries or casualty actuary society credential;

Contribute to the self-insuring employers' guaranty fund as set forth in rule 4123-19-15;

Pay all assessments levied upon self-insuring employers under rule 4123-17-32;

Reimburse for Disabled Workers' Relief Fund payments on claims for which the PEO or its client employers are employer of record, pursuant to paragraph (B) of rule 4123-17-29;

Report quarterly active clients, all claims and the reserves for each claim;

Prior to entering into an agreement with a client, provide written notice to the client that the submission of a lease termination notice form by the PEO to the administrator will require the PEO to report all information necessary for the administrator to develop a state fund experience modification factor for each client employer involved in the lease termination;

Submit all required information by the date and format set by the administrator. Submit information each year following the submission of a lease termination notice form, for as many years as required by the administrator to develop a state-fund experience modification factor for each client employer involved in the lease termination;

You may be required to submit additional information to the administrator if the administrator determines it’s needed to develop a state-fund experience modification factor for each client employer involved in the lease termination;

Along with a lease termination notice form, submit to the administrator the following information within 14 calendar days from the lease termination date for each client employer involved in the lease termination:

The payroll of each client employer involved in the lease termination, organized by manual classification and policy year;

The medical and indemnity costs of each client employer involved in the lease termination, organized by claim;

Any other information the administrator may require to develop a state-fund experience modification factor for each client employer involved in the lease termination.

A PEO granted the privilege of self-insurance shall not:

Enter into PEO agreements to provide workers' comp coverage through the State Insurance Fund;

Enter into a partial-lease agreement.

The administrator may revoke or refuse to renew the privilege of a PEO operating as a self-insuring employer if a PEO fails to provide the information requested by the administrator under this rule.

The administrator shall use the information provided under this rule to develop a state-fund experience modification factor for each client employer involved in a lease termination with a self-insuring PEO.